Earnings Previews: Abbott Labs, ASML, Baker Hughes, Netflix, Omnicom

The three major U.S. equity indexes closed higher on Friday. The Dow Jones industrials gained 2.2%, the S&P 500 added 1.9% and the Nasdaq rose by 1.8%. All 11 S&P sectors closed higher, led by financials (3.4%) and communications services (2.6%). For the week, the Dow slipped by 0.2%, the S&P 500 retreated 0.9% and the Nasdaq lost 1.6%.

Looking ahead, two housing reports are due this week, as is the weekly report on claims for jobless benefits. In premarket action Monday morning, all three indexes were up by about 1%.

Before markets opened on Friday, Goldman Sachs beat consensus estimates on both the top and bottom lines. Beginning with the third quarter, the bank has boosted its dividend by 25% to an annual rate of $10 per share. The stock traded up by about 4% in Monday’s premarket.

Synchrony Financial also beat both top- and bottom-line estimates. Shares traded up by more than 4%.

Bank of America missed estimates on both the top and bottom lines. The stock traded down by about 0.9%.

We included IBM, which reports after markets close Monday, in our Friday preview.

Here is a look at five firms on deck to report results late Tuesday or first thing Wednesday morning.

Abbott Labs

Medical device and generic drug maker Abbott Laboratories (NYSE: ABT) has dropped about 5.7% from its stock price over the past 12 months. Since posting a 52-week high in late December, the shares have tumbled by 22%. The company reports quarterly results early Wednesday.

The company closed its Sturgis, Michigan, baby formula lab in February following reports of bacterial infections in infants who had been fed products made at the plant. Flooding forced a second closure in early June, and production is expected to restart in the next several weeks.

Among 21 analysts covering the stock, 17 have a Buy or Strong Buy rating and one more rates the stock at Hold. The median price target is $130.00, and with shares trading at around $108.90, the upside potential is 19.4%. At the high target of $150.00, the upside potential increases to 37.7%.

Second-quarter revenue is forecast to drop sequentially by about 12.7% to $10.38 billion and to increase by about 1.6% year over year. Adjusted earnings per share (EPS) are forecast at $1.14, down by about 34% sequentially and by 2.6% year over year. For the full 2022 fiscal year, analysts are looking for adjusted earnings per share (EPS) of $4.87, down about 6.6%, on revenue of $41.78 billion, down 3%.

Abbott Labs stock trades at 22.4 times expected 2022 EPS, 22.2 times estimated 2023 earnings of $4.91 and 20.1 times estimated 2024 earnings of $5.42 per share. The stock’s 52-week range is $101.24 to $142.60, and the company pays an annual dividend of $1.88 (yield of 1.73%). Total shareholder return for the past 12 months was negative 5.2%.


Semiconductor manufacturing equipment maker ASML N.V. (NASDAQ: ASML) stock has plunged by about 33% over the past 12 months. Since posting a high in mid-November, shares have retreated by more than 45%. Recent U.S. pressure to withhold sales of the company’s state-of-the-art semiconductor wafer etching systems to China has driven the stock to a new 52-week low. The Netherlands-based company will report results before U.S. markets open on Wednesday.

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